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The Difference Between Non-Endowment & Endowment Funds

So you’ve decided to open a Donor Advised Fund because of all the great benefits it has to offer. Great! Now, do you want to move forward with an endowment or non-endowment fund?

Don’t know the difference? Take two minutes to read below and find out.

Endowment Funds

An endowment is a permanent fund. Endowment funds are pooled for maximum benefit and invested to achieve long-term capital growth. Contributions are irrevocable and become assets of The Foundation.

Key things to know:

Non-Endowment Funds

Non-endowment funds have no permanent principal balance and are immediately available for grant distribution. An advised non-endowment fund can become an endowment fund at any time upon request.
Escondido East Rotary Club Foundation Endowment Funds

Key things to know:

Some donors maintain both an endowment fund and a non-endowment fund, allowing them to regularly transfer monies from the non-endowment fund to the endowment fund to help build a balance upon which gifts can be provided in perpetuity.

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Now that you understand the differences between an endowment fund and a non-endowment fund, which one would you prefer? Click below to learn more.

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